How Biome Australia’s Record Sales and New Products Could Transform FY26
Biome Australia Limited has delivered record sales revenue in Q4 FY25 alongside positive EBITDA, setting the stage for its first full-year net profit. Strategic product launches and international expansion underpin its strong growth trajectory.
- Q4 sales revenue reached $5.04 million, up 33% year-on-year
- Positive EBITDA of $78k in Q4, with FY25 EBITDA expected to exceed $900k
- Annual sales revenue surged 41% to $18.4 million
- Launched Activated Therapeutics range and secured international distribution deals
- Maintained strong cash position with $2.75 million at quarter end despite $485k operating cash outflow
Record Revenue and Profitability Milestones
Biome Australia Limited (ASX, BIO), a leader in microbiome health products, has reported a landmark quarter with record sales revenue of $5.04 million for Q4 FY25, marking a 33% increase compared to the prior corresponding period. This robust performance contributed to an annual sales revenue of $18.4 million, up 41% year-on-year, and a positive EBITDA of $78,000 for the quarter. The company anticipates its full-year EBITDA to exceed $900,000, positioning it for its first full-year net profit.
Strategic Investments Fuel Growth
Despite a net operating cash outflow of $485,000 in the quarter, Biome’s cash balance increased slightly to $2.75 million, supported by a $5 million working capital facility secured from NAB. The cash outflow reflects deliberate investments in launching the new Activated Therapeutics product range, building inventory to support FY26 growth, and expanding international market presence with distribution deals in Canada, Ireland, and New Zealand. These initiatives were complemented by the Activated Probiotics Symposium in Melbourne, a major professional education event that attracted hundreds of health practitioners and reinforced Biome’s commitment to evidence-based innovation.
Product Innovation and Market Expansion
The Activated Therapeutics range, launched during the quarter, has been embraced by key national pharmacy partners, signaling strong market acceptance. Biome’s flagship Activated Probiotics, backed by clinical research, continue to address prevalent health concerns such as low mood, sleep issues, bone health, and digestive conditions. The company’s focus on practitioner-only distribution and education aims to deepen engagement with healthcare professionals, driving sustained demand.
Financial Discipline and Outlook
Biome’s financial management reflects a balance between growth and prudence. The company maintained a gross margin of 61% for FY25 and managed inventory levels strategically, holding $4.3 million in stock including $1.3 million in safety stock funded by trade finance. Operating expenses rose in line with growth activities, particularly in sales, marketing, and staff costs. Looking ahead, Biome expects Q1 FY26 to deliver another record quarter in sales revenue, building on the momentum established in June.
Leadership Perspective
Managing Director Blair Vega Norfolk highlighted the quarter as a pivotal period, “Our research and development efforts culminated in the successful launch of Activated Therapeutics, supported by strong adoption across pharmacy and practitioner channels. The Activated Probiotics Symposium was a proud moment to showcase our innovations and engage with key opinion leaders, setting a solid foundation for FY26 growth.”
Bottom Line?
Biome’s record-breaking quarter and strategic investments set a promising path toward sustained profitability and international expansion.
Questions in the middle?
- How will Biome’s international distribution deals translate into revenue growth in FY26?
- What impact will the increased inventory investment have on cash flow and gross margin management?
- Can Biome sustain its positive EBITDA trajectory amid ongoing product launches and marketing expenses?